Mastercard’s Profits Rise; Misses Estimates (MA)

Payment services company, Mastercard Inc(MA) saw a surge in profits for the fourth earning, but missed analysts estimates on Thursday.

The Purchase, NY based company reported fourth quarter earnings of $605 million, or $4.86 per share, up 96% from $19 million, or 15 cents per share last year. Excluding special items, earnings came in at $4.03 per share, remaining flat from last year. Analysts expected to see EPS of $4.81 for the quarter.

Revenue increased by 10% for the quarter, coming in at $1.9 billion, from $1.73 billion last year. Analysts expected to see revenue of $1.89 billion.

During the fourth quarter, Mastercard bought back 1.3 million shares of stock, costing the company $613 million.

For 2012, the company reported earnings of $2.76 billion, or $21.94 per share. This was up from $1.91 billion, or $14.85 per share in 2011. Adjusted earnings were $22.04 per share, up from $18.70 per share in 2011. Analysts expected to see $22 per share.

Mastercard shares were mostly flat during Thursday morning trading. The stock has increased 44% in the past year.

The Bottom Line
Shares of Mastercard Inc(MA) have a 0.23% yield, based on Thursday morning’s price of $518.66.

Mastercard Inc(MA) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.